What is Tax Filing Status?

By Tax&Facts | Published on Feb 4, 2025 | Read: 3 Mins

When you file your taxes, one of the first things you have to decide is your tax filing status. Your filing status determines how much tax you owe, what deductions and credits you can claim, and even how much you’ll pay. It’s a way of classifying your personal situation, like whether you’re married, single, or head of a household.

There are five main filing statuses, and each one has different rules and benefits. Here’s a breakdown of each:

1. Single

Who Should Choose This?

If you're not married and you don't qualify for another filing status (like head of household), you’ll likely file as Single.

Key Points:

• You’re considered unmarried and don’t have dependents.
• This status generally results in paying the most tax compared to other statuses.

2. Married Filing Jointly

Who Should Choose This?

If you’re married and want to file a joint tax return with your spouse, choose this status. It’s the most common option for married couples.

Key Points:

• You and your spouse combine your income and deductions on one tax return.
• This often results in a lower tax bill because the tax rates are more favorable and you can qualify for more deductions and credits.
• Both spouses are responsible for the tax return (including any taxes owed).

3. Married Filing Separately

Who Should Choose This?

If you’re married, but you choose to file separately from your spouse, you would choose this status. This might happen if you want to keep your finances separate or if one spouse has high medical bills or miscellaneous expenses that could benefit from filing separately.

Key Points:

• You and your spouse each file your own tax return and report your own income.
• You might miss out on certain tax breaks like the Earned Income Tax Credit or Child Tax Credit.
• This can sometimes lead to higher taxes because of limited deductions and credits.

4. Head of Household

Who Should Choose This?

If you're single, but you take care of a dependent (like a child or a relative) and pay for more than half of the household expenses, you may qualify to file as Head of Household.

Key Points:

• You’re considered the primary provider for a dependent, even if you’re unmarried.
• This status allows for a lower tax rate than Single, and you might qualify for higher deductions and credits.
• You must be single or “considered unmarried” on the last day of the year.

5. Widower (Qualifying Widow(er) with Dependent Child)

Who Should Choose This?

If your spouse passed away in the last two years and you have a dependent child, you might qualify to file as a Qualifying Widow(er).

Key Points:

• This status is available for up to two years after the death of your spouse.
• It allows you to use the same tax brackets as Married Filing Jointly, which can provide significant tax savings.
• You must have a dependent child and not have remarried during this time.

Why Your Filing Status Matters:

Your filing status affects how much tax you owe or how much refund you get. It can also determine:

• Standard Deduction: Each filing status comes with a different standard deduction (the amount you can subtract from your income before calculating your taxes). For example, Married Filing Jointly has a higher standard deduction than Single.
• Tax Brackets: The IRS uses tax brackets to determine how much you owe based on your income. Your filing status affects which bracket you fall into.
• Eligibility for Tax Credits: Certain tax credits, like the Earned Income Tax Credit or Child Tax Credit, depend on your filing status.

In Summary:

Choosing the right tax filing status is important because it affects your tax rate, the amount of deductions you can claim, and the tax credits you might qualify for. If you're single, married, or take care of dependents, your status can significantly impact how much you owe or how much you get back.